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USD/JPY keeps finding plenty of buyers circa 106.00

FXStreet (Bali) - USD/JPY is recovering off 106.00 level, presently at 106.24, following comments from the Japanese deputy economy minister, saying that weakening the yen is good for the Japanese economy, adding that while "the currency hit the 106 yen level today for the first time in a long time, I’m not worried at this level."

Technically, as Valeria Bednarik, Chief Analyst at FXStreet, notes: "The pair has been steadily advancing after the break above critical 105.00/40 area, and shown little aims to correct lower despite the short term picture presents some bearish divergences coming from the 1 hour momentum."

"Despite the higher highs in price, the indicator has turned lower", Valeria says, "and even crossed its midline to the downside with the latest run against the greenback, albeit price held above the 106.00 mark."

"Price needs at least to accelerate downward below 106.00 to confirm a more sustainable bearish correction towards 105.40/50 price zone. Renewed buying interest above 106.50 on the other hand, should deny the possibility of a bearish move and see the pair extending up to 107.20 over the upcoming 24 hours", Valeria adds.

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